Originally published at www.seclive.com
Filing in Focus: CarMax 8-K, September 24, 2013
CarMax Inc. (NYSE:KMX) announced its second quarter financial results, reporting double-digit earnings growth. The used-car retailer, largest in the U.S., reported earnings that increased 26% to $140.3M. Gross profit improved 18% to $434.7M while gross profit per vehicle sold increased by $2 to $2,174. Wholesale gross profits fell 6% to $849 while its wholesale sales jumped almost 9%. In the second quarter, CarMax opened two new locations, hoping to add to its continued used-car sales growth. This quarter CarMax used-car sales increased over 20% but the average selling price slightly fell. President and CEO Tom Folliard commented that the main contributors to its growth were used and wholesale improvements. The company sees used-car demand increasing and with its measured expansion, hopes to capitalize on what it believes to be an expanding used-car market.
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